Is Plum Creek Timber Co. Inc. (PCL) Going to Burn These Hedge Funds?

With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Winton Capital Management, managed by David Harding, assembled the most valuable position in Plum Creek Timber Co. Inc. (NYSE:PCL). Winton Capital Management had $24.8 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $4 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Muller’s PDT Partners and Paul Tudor Jones’s Tudor Investment Corp.

Let’s check out hedge fund activity in other stocks similar to Plum Creek Timber Co. Inc. (NYSE:PCL). We will take a look at Franco-Nevada Corporation (NYSE:FNV), DexCom, Inc. (NASDAQ:DXCM), Robert Half International Inc. (NYSE:RHI), and CIT Group Inc. (NYSE:CIT). This group of stocks’ market values match PCL’s market value.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $586 million, below the $613 million figure in PCL’s case. DexCom, Inc. (NASDAQ:DXCM) is the most popular stock in this table. On the other hand Franco-Nevada Corporation (NYSE:FNV) is the least popular one with only 15 bullish hedge fund positions. Plum Creek Timber Co. Inc. (NYSE:PCL) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard DXCM might be a better candidate to consider a long position.